Bitcoin’s Optimal Entry Point for Bull Market: Insights from 10x Research

A recent analysis highlights that Bitcoin’s price should ideally return to the low $40,000 range for the best opportunity to enter the market ahead of a potential bull run.

Waiting for the Right Price

Market analysts suggest that investors may want to remain patient until Bitcoin’s value drops into the low $40,000s to secure a favorable entry before the next significant price movement. According to Markus Thielen, head of research at 10x Research, lower prices would likely suggest another major rally is on the horizon.

The last recorded instance of Bitcoin being in this sought-after range was on February 6, when it traded at $42,577, as per CoinMarketCap data.

Current Market Status

At the time of this report, Bitcoin (BTC) was priced at $56,848, indicating a decrease of 12.89% since July 31. Other analysts are echoing Thielen’s sentiments, predicting that Bitcoin may experience a decline into the $40,000s within the forthcoming months.

• Timothy Peterson from Cane Island Alternative Advisors suggested both $40k and $80k are equally probable within the next 60 days.
• Crypto Rover noted that should Bitcoin break its current support levels, a drop to $40k could follow.
• David Gokhstein expressed a desire for Bitcoin to fall to the $50k-$40k range, viewing it as an opportunity to increase holdings.

Concerns About Buy-and-Hold Strategies

While the $60,000 mark had served as a robust support level since March, Bitcoin has now fallen below this threshold for two consecutive days. Given the anticipated volatility, Thielen cautions against adopting a buy-and-hold approach, emphasizing that the current risk-reward dynamic does not favor Bitcoin or Ether (ETH) as it does in the U.S. stock markets.

Thielen acknowledges that despite the potential buying opportunity, investors should implement a stop-loss strategy at $54,000 due to lingering downside risks. This caution is warranted, especially in light of three consecutive days of outflows from Bitcoin-focused exchange-traded funds (ETFs), which may not be effectively capitalizing on the current dip.

Investor Sentiment and ETF Dynamics

Investors who entered the market via spot Bitcoin ETFs, launched on January 11, find themselves “underwater,” considering the average price of these ETFs is around $60,000. This downtrend in Bitcoin’s price might deter retail investors, who generally tend to follow market trends, from making large buy-the-dip moves.

Thielen remarked on the unexpected decline of Bitcoin’s price despite attracting $17 million in investments in spot Bitcoin ETFs since inception, particularly as it dipped below $50,000 on August 5, nearing its launch price of $46,656.

Please note that this analysis does not constitute investment advice. All investment decisions carry inherent risks, and readers are encouraged to conduct thorough research prior to making financial choices.